Interesting article about Oil

wanghong

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Below is an Interesting article I found, which says that.....Do not
expect much from Crude Oil producers and future is not with the
4 X, L' T5 S$ T3 Y4 xcompanies producing Jet fuels but Biofuels. Also no wonder if some of
these oil producer will go bankrupt or out of the business even if
! H3 S& C  y' }crude prices improves. This implies also to good names such as Shell,
EXXON, BG, BP, Cheveron ....xyz.. oils

Recently OPEC reduced crude oil production twice over just a few
5 F: ?% r# N4 w9 e; o2 Umonths. There are three wars going on in Gaza, Iraq and Afghandistan.
, o0 Y# s, ?9 b9 l  A: y8 DA year ago these things would have spiked the price of crude oil by at
least $50.00 per barrel. Today, oil price declined by a record amount.


There are several reasons the price of oil is decreasing in the face
6 G$ G8 y. Z$ R; wof so much news. These reasons are:

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0 |0 G% n3 y; j9 G0 }# [. ]1. New oil has been found in Canada, Montana, North & South Dakota and
( ^' n+ B- n; Y* M. v, Ein the ocean near Brazil. Each of these oil fields has more oil than
Arabia.

4 `$ K: }  _5 j* D. h
" N7 @/ Z+ p, c( c7 N+ g( j8 \2. New natural gas has been found in Pennsylvania and West Virginia.
3 T; l7 m, m# A! L9 NThis is the largest find in North America.
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3. New methods of injecting CO2 and surfactants into oil wells is
being used to double their output.


4. Production of bio-fuels is beginning to reach critical mass. Bio
5 D- |3 `' Y4 `; Hfuel is being produced from many plants and algae. The production
; r, O2 w" T, ?8 Zpotential per acre in some cases is astounding. Many countries are
racing to produce bio fuels.
; |/ m, ~9 g( |+ T4 e: D

5. Virtually every restaurant in the US and all food processing plants
are now selling their used oil to bio-diesel producers. Every pork,
8 |8 N1 O" R1 d! d! q3 T% i8 C! Fcattle, turkey and chicken processing plant will soon sell their fat
to bio-diesel producers. One pork processing plant in Oklahoma is
producing 30,000 gallons of bio-diesel per day from pork fat.
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6. There are 99 nuclear reactors in various stages of planning and
- e6 H! j/ ~2 R' W- @2 Yconstruction around the world at this time. Several hundred more are
9 F5 a1 h( z# V8 c' e! kexpected to be built in the future. Much of the energy they produce
will replace oil.


. _& I/ o6 [3 u7 g5 @5 u4 K. c7. Every company in any form of transportaion business is replacing
older equipment such as trucks, airplanes, train engines, ships, etc.
; b7 F  [& R4 \! h; w4 [with new more fuel efficient equipment. Airlines and railway companies
" _. R$ Y& z2 m: \are experiencing 20% to 25% better fuel econony with the new
equipment.


Airlines are flying airplanes with bio-fuel. They are finding the bio-
fuel is cleaner and performs better than jet fuel.


: K" h+ Z! Z3 }/ N4 v( I8. Cities and counties throughout the US are selling the rights to
4 N$ _/ ~+ V  `+ n0 ?% {capture methane gas from landfills. This is a huge source of gas
8 ^7 T( `7 a0 m* B7 qavailable at very little cost or risk. The gas is displacing crude
oil.


% n( x: v4 t8 V& }8 ?9. Coal is being transformed into a clean burning liquid fuel. The CO2
) D: |6 a- T4 |3 Tproduced as a byproduct is sold to oil companies for injection into
oil wells.


+ o  b9 V  L8 K4 Y* v7 [' D10. Solar, wind and ocean energy is displacing oil as an energy
, ^; t6 H6 w$ }5 j5 Z) l( Csource. Three new wind turbines are being erected every day in the US.


+ w) U6 K  s+ g$ yEach of the above by itself will not make a large difference in the
price of crude oil but the sum of all of them together is world
changing. The important thing is that OPEC no longer has the ability
+ M: S# s# b, y; @- n# F: Bto control oil prices.
+ B) U4 J( y, t

: o3 e1 }* C6 i/ z( I2 ?With the above scenario, I still believe that there are under
performed OIL companies and probably they are yet to get the justified
+ V0 ?8 t/ z1 `value .....
- Y6 Y8 P) N" Q  oIAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...

& x; a- Q1 ~" y- e
) l. ~2 R3 ^9 g% G6 TThe above articles are from WSJ .............PUBLISHED ON 9TH JAN
. {) f! M6 ]8 f2009 ... FYI-Only